I think OO's are great for beginners because if they teach anything it is how to manage your losses. Losses are blue collar and Wins are white collar.
One of the toughest parts of this strategy is the losses that get out of hand instantly and for much much more than you bargained for, usually on news you missed, sometimes for no apparent reason. The first few minutes of the day is the most volatile, slippage can be horrendous. Sometimes there are large macro themes in play, like sector rotation or earnings news that affects a whole sector and you missed something. Damage control and patience is a tough balancing act when things are happing quickly on multiple positions. Check out the first few minutes of LVS today. News that didn't hit briefing until after the open. I was short at 65.80 and down 6 points before I even knew what was going on. Even if you were watching it closely, you'd be a buck and a half under water before you even had your 20 cent stop order entered. About a week ago there was some news on healthcare payee stocks that none of the news services flagged. Short 6 or 7 of them at once and down 5 grand before I could blink. It can be a profitable strategy, but there are many grenades that you will have thrown in your lap. You need experience, discipline and enough cash to handle what you'll face. Good luck bootcampers, welcome to the jungle!
Same story as yesterday for me - lots of blocks on news, filled on only small orders, scratch day (no grenades - stayed in the rear with the gear )
i am probably going to wait out the rest of this week for OO's because nothing is looking 'right' on my spreadsheet and i forced some trades yesterday and was clobbered so i would rather wait until things look 'normal' again before i step in.
Who am i fooling, i can't stay away . I had my envelopes to wide today though and it bit me (esp. GE). 3 fills / 2 short / 1 long 1 win / 2 losses / -$650